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RBS losses surge to £2.04bn in H1

By Verdict Staff
August 5, 2016

Royal Bank of Scotland (RBS) has reported attributable loss of £2.04bn for the first half of 2016, compared with a loss of £179m in the prior year.

The bank attributed the mounting losses to a £1.3bn expense related to conduct and litigation costs. Restructuring charge during the first half stood at £630m, of which £345m is related to Williams & Glyn.

The banking group recorded an operating loss £274m during the period, compared to a profit of £261m a year ago.

The bank’s total income stood at £6.06bn, a fall of 16.4% from £7.25bn in the first half of 2015. Net interest income dropped 1.9% to £4.33bn from £4.42bn in the prior year.

The group’s operating expenses slid18.9% to £5.93bn from £7.31bn in the year ago first half.

The UK personal & business banking (PBB) division posted operating profit of £533m for the first half of 2016, down 30.8% from £771m a year ago.

The unit’s net interest income increased 2% to £2.11bn from £2.06bn in the prior year. Operating expenses rose 10.7% to £2.04bn from £1.84bn a year earlier.

Ulster Bank RoI recorded operating profit of £8m for the first half of 2016, a slump of 94.3% from £140m in the first half of 2015.

The unit's net interest income increased 4.2% to £198m from £190m a year earlier, while operating expenses surged 50.7% year-on-year to £312m.

RBS CEO Ross McEwan said: “We’re at the mid-way point in our five year plan and we’re making good progress. We are clearly in phase 2 of our strategy where our focus is on drawing a line under many of the legacy issues that have plagued this bank, and transforming the core business so we can deliver consistent, sustainable profits and results for our shareholders and do great things for our customers.”